Why or why not?
At what age (of the child) should you start something like this?
How do you know how much to put in?
Do you have a 529 Plan for your child’s college education?
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Why or why not?
At what age (of the child) should you start something like this?
How do you know how much to put in?
.
June 29, 2012 at 3:36 pm
No. Further education is free here.
Jane Doe 2.0
June 29, 2012 at 3:38 pm
We are low rent… Our children will never be able to go to a “university” if we are paying for it.. We are having a hard enough time putting my stepdaughter through community college… We live for the now and save for the later… Our kids can go to community college, or pay for it themselves.
MT
June 29, 2012 at 4:13 pm
No. My mother has already set aside enough money for my daughter to go most private schools and cover tuition and room and board at current prices. Yes, education is increasing and has been increasing far beyond the rate of inflation, but I think government aid and loans is a big part of the problem.
I’ll be happy to help out for supplemental costs not covered by my mother’s planning.
Artie Lange Fan
June 29, 2012 at 4:39 pm
We just have regular savings accounts for both of them and put money in them both monthly.
I didn’t choose the college one in case they ever need the money for something other than college. They certainly can use it towards college if they wish or something else they may need.
royalbird
June 29, 2012 at 4:57 pm
Nope. My parents didn’t pay for any of my college education. My husband’s didn’t either. I think college meant more to me because I made my way through and so did my husband. I hope our kids want to go to college, but we will not be paying it for them. We will encourage them to save half the money they make as kids and teenagers, and maybe give them some rewards if they do that, but that is all.
neato1975
June 29, 2012 at 5:32 pm
We do, but it was started by my father for my son’s first Christmas. I think he puts $1000 in there each year. I would imagine he’ll start one for my daughter next Christmas.
At this point we couldn’t put much away for either child’s college fund…I quit my job to stay home until both kids are in school and what extra we have is being invested for retirement. Once I’m back to work we’ll invest more into college funds…
TJS
June 29, 2012 at 6:13 pm
We are using a State plan that we started for each boy when born so inflation will not effect our payments. Ours is 100% guaranteed by the state and you can use the credits anywhere in the USA – most states are not this good. We only did it to cover the first 3 years and will handle the last one & rent separately.
pdooma
June 29, 2012 at 6:46 pm
No. But I do have money set aside. I want flexibility with my investments, not locked in to a 529.
Ashley ♥Aislings Mum♥ {09.25.08}
June 29, 2012 at 7:28 pm
No, we just have a regular savings account for her that we deposit money into monthly. We are hoping it will be used for college but she is free to use the money for whatever she wants to when she’s older. Whether that’s education, a car, a house or any other “big” purchases. We will hand the money over to her after she graduates high school.
She will know that our intent is that it is used for college, so if she spends it on something else, she will be on her own for college. We already put the money aside for that and she chose to use it for something else.
seven
June 29, 2012 at 8:26 pm
its a good idea because of the tax benefits. you can take out the money and not use it for college, but there is a 10% penalty and you are taxed. there’s many different 529s so search whats best for you. some give extra benefits if you are from that state. if you arent sure, open a small one and see how it does in a year or so.
desmeran
June 29, 2012 at 8:42 pm
We do. It’s a great tax savings vehicle if you’re sure you’re going to have children going to college. I know it’s not a popular view on here, but for us, college is as non-negotiable as high school, and with four kids we’re determined to save as much as we can even though they’ll get a big tuition break wherever they decide to go as a benefit of my husband’s job (he’s a university professor). My husband and I were lucky enough to go to a great (but very expensive) university, and we don’t want our kids having to turn down an offer to a place like that for financial reasons. We started contributing to the 529 when they were born. The earlier the better … more time to compound earnings.
First, max out your retirement plan (there aren’t loans and grants for retirement). But then, if you’ve got extra, it’s a great idea to put some some into a 529.
reddevilbloodymary
June 29, 2012 at 9:02 pm
My kids are 10 and 12 years old and we need to start a 529 plan now! The kids have savings accounts and investment accounts, but I plan on paying for as much college as I can. I don’t want them starting out their independent lives with college debt to pay.